WORK is progressing on a major project to redevelop the former Unifi site at Kiltoy.
It is understood that E&I Engineering, which has headquarters in Burnfoot, has plans to expand its existing footprint into Letterkenny.
This week the company announced that it has been acquired by Ohio-based Vertiv, a US based infrastructure solutions and services company, for around $2 billion.
Industry sources say that the company has plans to turn the old Unifi Plant (two) facility into an engineering manufacturing business.
The modern industrial / warehouse facility with ancillary offices, comprises approximately 17,651 sq m (190,000 sq ft) on 15 acres of the overall site.
The Unifi plant, which made yarn and had up to 900 employees in the town, closed for the last time in 2004.
Since then, a number of different proposals have been made for the site.
Founded in 1986 by Mr O’Doherty, E&I is a leading independent provider of electrical switchgear and power distribution systems.
In total, the company has around 2,100 staff globally and has been in Burnfoot since 2004 where it employs over 1,000 people.
When contacted yesterday, Wednesday, Mr O’Doherty declined to comment on plans for the former Unifi site.
With all current roles to be safeguarded in the takeover, E&I says it will be followed by the recruitment of approximately 100 new staff across its three locations in the North West in the next year.
Cathaoirleach of Donegal County Council and Buncrana Councillor Jack Murray said he is hopeful that the sale will increase employment opportunities in Donegal.
“It is early days yet but my first thought is that E&I has been a huge success story and employs a huge amount of people from both sides of the border in the small village of Burnfoot.
“It is a huge generator for the local economy.
“I don’t know the inner workings of the sale but I am hoping that all the staff who are already in place will be retained and the company can continue their success and grow further within the county.
“This should be seen as a real opportunity to provide more jobs and opportunities for local people.
“The people of our local area have a lot to offer and the North West is a good place to do business and I hope the new owners will recognise that and seek to expand within the area,” said Cllr Murray.
The transaction has been unanimously approved by Vertiv’s Board of Directors and is expected to close in the fourth quarter of 2021. E&I also has a manufacturing plant in Derry along with operations in America and the United Arab Emirates.
Philip O’Doherty said they were excited to join the Vertiv team and to continue to grow their business through Vertiv’s global reach, strong channel presence and great customer positioning in critical digital infrastructures.
The upfront consideration consists of $1,170 million in cash and approximately $630 million of Vertiv common stock.
The deal, which also includes E&I Engineering affiliate, Powerbar Gulf LLC, carries the potential for a further $200m in cash to be paid, if profit targets for next year are met.